Bronco's Routing #: 251480592
A Traditional IRA offers a tax deferral for qualified contributors. In other words, if you make $30,000 and you contribute $1,000 a year to your Traditional IRA, you would only be taxed by the government on $29,000. Taxes are then paid on earnings when you withdraw the money once you reach retirement age.
You can invest in a Traditional IRA if you are under the age of 70 1/2 and have income from some sort of earned compensation, or if you are filing federal taxes jointly with a spouse who has income from compensation. You can also roll money from a qualified compensation plan—such as a 401(k)—into a Traditional IRA.
While your tax advisor can offer more guidance on which type of IRA best suits your needs, we can answer your questions and assist with opening your IRA Account. Simply stop by any Bronco office or call us at 757.569.6000.
Currently, you can contribute up to $5,500 annually (for owners age 50 and older, you may be able to contribute up to $6,500), but contributions cannot exceed compensation. Contribution regulations change annually, so be sure to check with your tax advisor when opening an IRA. Contributions may be tax deductible and earnings will grow tax-deferred until withdrawn.
Contributions may be made by:
One additional benefit of a Traditional IRA is there are circumstances when you can withdraw funds from your with out being penalized.
Those conditions include withdrawing money for:
You can also elect to start withdrawing from your Traditional IRA without penalty once you reach the age of 59 1/2.
Be sure to check with a qualified tax advisor when opening an IRA. More information on IRAs here.